Editor's Note:

Investors seem nervous. The disappointing economic news out of China this morning and the troubling headlines from Portugal sparked a sharp sell-off at the open. Yet there was no follow through. Most stocks immediately rebounded.

There was money flowing into "safe haven" trades like bonds and gold but bonds pulled back from their morning highs. Of course the short-term trend for bonds is higher.

The S&P 500 index pierced short-term support at its simple 20-dma and the bottom of its intermediate bullish channel but managed to bounce back by the closing bell.

Market leaders like the semiconductors and the transport are still holding up pretty well. Meanwhile the small cap Russell 2000 continues to underperform and tested possible support near 1150 today.

Overall it feels like investors are using the Portugal and China news as an excuse to take some money off the table.

No new positions tonight.